Paychex Earnings Preview: Strong Job Environment, Health Insurance Demand To Drive Revenues

The stock has been on a bull run in the past few months, reaching new highs on the strength in the U.S. job environment. For the third quarter, we expect the robust U.S. job market conditions to translate into higher checks per client for Paychex. Purchases of solutions for compliance with the Patient Protection and Affordable Care Act should also help increase Paychex's revenues.